Anyone who has ever paid a pretty sum to a handyman for a problem around the house believes that working as a handyman (or handyperson) is an excellent way to make easy money. Like most things with common sense, however, this idea isn’t really accurate. A lot of handypeople have to work for so-called shared-economy platforms that end up taking a hefty percentage. Starting a handyman business is the only way to turn handiwork into a really profitable business you can grow and improve.
Like all other businesses, the first question is about the “how.” How to start a handyman business — getting an answer to this question is precisely what this article is about. However, before discussing how to start a handyman business, we will take a look at basic concepts and the definition of the handyman business to make sure we’re all on the same page. We will also consider the different tools you need to work more efficiently and introduce the best handyman business software in 2022.
Defining Handyman Business — What It Is and What It’s Not
A handyman is a person who does odd jobs like small repairs, home maintenance, hanging TVs, and other tasks that homeowners and rental property companies require to ensure that their properties stay in good repair.
That means most handymen will be working in the client’s home or business.
Working on someone else’s property has special legal requirements that you need to pay attention to during the beginning stages of starting a handyman business.
We’ll cover them in general terms as each state will have different A handyman is a person who does odd jobs like small repairs, home maintenance, hanging TVs, and other tasks that homeowners and rental property companies require to ensure that their properties stay in good repair.
That means most handymen will be working in the client’s home or business.
Working on someone else’s property has special legal requirements that you need to pay attention to during the beginning stages of starting a handyman business.
We’ll cover them in general terms as each state will have different requirements.
What type of work can a handyman do legally?
Each state has different requirements, but in general, a handyman can typically do jobs under $1,000 without a handyman license. If you plan on taking larger jobs, small business owners should check what their state’s requirements are on Next’s Handyman License Requirements.
Local contracting laws may also impact whether you need handyman licenses for smaller jobs. Go to your city or county’s website to establish whether you have local licensing requirements.
If you wish to do larger repairs, like home remodeling, or other services like plumbing, HVAC, or major electrical repairs, you may need a contractor’s license. As previously mentioned, your city or county will give you the best information about which license is better for you.
Do handymen need to be licensed? I wish I could give you a better answer to this and on how to get a handyman license.
Unfortunately, the spectrum of requirements is so dramatic that the best I can tell you is to use Money Lion’s links to the proper governing authorities for each state.
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What Type Of Work Can A Handyman Do Legally?
Each state has different requirements, but in general, a handyman can typically do jobs under $1,000 without a handyman license. If you plan on taking larger jobs, small business owners should check what their state’s requirements are on Next’s Handyman License Requirements.
Local contracting laws may also impact whether you need handyman licenses for smaller jobs. Go to your city or county’s website to establish whether you have local licensing requirements.
If you wish to do larger repairs, like home remodeling, or other services like plumbing, HVAC, or major electrical repairs, you may need a contractor’s license. As previously mentioned, your city or county will give you the best information about which license is better for you.
Some handymans have a general contractors license so that I can manage larger projects than most handyman businesses, but I make more profit on my smaller projects.
Do handymen need to be licensed? I wish I could give you a better answer to this and on how to get a handyman license.
Unfortunately, the spectrum of requirements is so dramatic that the best I can tell you is to use Money Lion’s links to the proper governing authorities for each state.
Starting a Handyman Business in 10 Steps
- Plan your Handyman Business
- Make the Handyman Business into a Legal Entity
- Make sure you register with your Handyman Business for Taxes
- Open a Business Bank Account & Credit Card
- Create Accounting for your Handyman Business
- Find the necessary permits and licenses to operate your Handyman Business
- Get Handyman Business Insurance
- You must define Your Handyman Business Brand
- Design your Handyman business website
- Create Your Business Phone System
There’s more to starting your own business than simply filing it in the State. We’ve put together this easy guide for starting your handyman-type business. These steps will help ensure that your new venture is well organized, registered correctly and legally in compliance.
STEP 1: Plan your business
A clear and concise plan is vital to being successful as a business owner. It will assist you in mapping out the details of your company and uncovering the undiscovered aspects. The most important things to be aware of include:
- What are the initial and ongoing expenses?
- Who is your ideal customer?
- How much do you be charging customers?
- What is the name you will give your company?
Using data available from previous handyman businesses and contractors, I can provide a few general answers to these answers right now.
What are the costs in establishing a handyman-related business?
If you’re able to find an efficient vehicle for transporting equipment, the initial costs will be relatively low. Actually the most successful business owners say that you can begin your business for less than $1000. The only things you require are basic tools for home repair along with marketing supplies and insurance. The cost of insurance varies based on your level of experience and the scope of projects you are planning to undertake. The average cost is 361-$792. If you want to boost your business’ expansion, think about developing a simple website for customers, which allows them to learn about the basic details and contact details.
What are the costs that are ongoing for a handyman’s business?
Even though your ongoing expenses may be more expensive than your initial start-up expenses, the majority of handymen have relatively low overhead expenses. You’ll need to keep the licenses required and be covered by the appropriate insurance. Regular maintenance repairs, replacement, and repair of all equipment, including your vehicle will be the largest cost. If you’re employing a team and you’re a part of a team, you’ll need to think about Workers’ Compensation costs along with the expenses for the payroll.
Who is the market that you want to target?
In this field there is a huge selection of customers you can select from. Many consumers lack the skills, time or motivation to do repairs and maintenance on their homes. Determine your audience by looking at the kind of tasks you’ll undertake and the client base that you are attracted by. For instance females older than fifty living alone is a common target. They’re not equipped to handle the majority of home maintenance tasks, and are more than willing to pay for an honest, hardworking repairman.
How can a handyman’s company make money?
The cost of fees varies based on the nature of the work you’re being hired for. They are paid after the task is done.
What are the costs you will cost your customers?
The cost of your services will differ according to the location, size, and the scope of the project. Some handymen charge an hourly fee, while others charge per job. The average hourly rate ranges between $60 and $125. To prevent over- or undercharging professionals suggest setting up cost-based charges. For more details about this, download this handy hourly rate calculator for the man.
How much money can a handyman’s business earn?
Although the typical, one-man operation is only approximately $40,000 per year, however, there are handyman companies that are earning up to $3000 per week. Your earnings are directly related to the type of work you are able to take on and how precise your fee arrangement is.
How do you make your company more profitable?
To increase your profit It is recommended to employ multiple employees with different skills. The higher quality of employees you hire, the greater number of tasks your company is capable of taking on. Companies that earn the most are also able to show the fact that working in partnership with property management companies can yield the most profits.
What name will you give your company?
Selecting the best name for your business is crucial and a challenge. If you don’t have a concept in mind, go to the How to name a business guide or ask for help to come up with a name by using the Handyman Generator for Business Names. Generator.
If you are a sole-proprietorship, it is possible that you prefer to operate under a different business name than your own. Check out the DBA tutorial for more information.
When creating for a business name, we suggest researching your business name using:
The business records of your state.
State and federal trademarks records
Social media platforms
Web domains are available.
It’s crucial to ensure your domain name is secure before anyone else does.
Step 2: Register Your Handyman Business
The most popular structures for business are the partnership, sole proprietorship and restricted liability corporation (LLC) and the corporations.
A legal company, for example the LLC or corporation ensures that you are not personally held accountable when your handyman company is accused of being sued.
Read our Guide to Form Your Own LLC
Create a Professional Service Form for the LLC for You
Two reliable services that are reliable:
You can create an LLC by yourself and pay the minimal state LLC expenses or contract any of the best LLC Service for a modest, additional cost.
The recommended format is HTML0. You must select a licensed agent in your company. LLC formation packages typically come with a free year of service from a registered agent. You may choose to employ an agent registered with the government or be your own.
Step 3: Register For Taxes
You’ll have to register for a range of federal and state taxes before you are able to open your business.
To be able to pay taxes, you’ll need to submit an EIN. It’s easy and absolutely free!
You can obtain your EIN for free on the IRS website, by mail, fax or fax. If you’d want to know the basics about EINs and the ways they may help your LLC check out our article How do I get what is an EIN?.
Find out how to obtain an EIN within the guide to what is the definition of an EIN guide or locate your current EIN with our EIN search guide.
Small Business Taxes
Based on the type of business structure you select there are a variety of possibilities for how your business is taxed. For example, certain LLCs may benefit from taxation by the status of S-corporation (S corporation).
You can find out more about taxes for small-sized businesses by reading these articles:
LLC Taxes
Sole Proprietorship vs LLC
LLC vs Corporation
LLC vs S Corp
How to Start an S Corp
S Corp vs C Corp
There are certain state taxes that may be applicable to your company. Find out more about sales tax in the state and franchise tax in our guides to state sales tax.
Step 4: Open A Company Bank Account And Credit Card
Utilizing special business accounts and banking is crucial to safeguard personal assets.
If your personal and business accounts are combined Your personal assets (your vehicle, your home and other personal possessions) are at risk if your company is being sued. In the field of business law it is known as cutting through the business veil.
Furthermore, knowing how to create business credit can allow you to obtain credit card as well as other loans under your company’s name (instead of your own) as well as better rates of interest, more credit lines and much more.
Create an account at a business bank
It is also a requirement to apply for business loans opening a business bank account can also be a requirement when applying for business loans.
The separation of your private assets is done by company’s assets. This is essential to protect your personal assets.
Accounting and tax filing simpler.
Open net 30 accounts
Net 30 accounts can be used to build and establish business credit and boost cash flow for businesses. With a net 30-day account, businesses can purchase products and pay the entire balance in a period of 30 days.
NetMany NetMany net 30-credit providers submit their information to the top businesses credit bureaus (Dun and Bradstreet, Experian Business, and Equifax Business Credit). This is the way businesses can create credit for their businesses so that they are eligible for credit cards as well as other credit lines.
Take out a business credit card
A credit card for business will help you:
Separate your personal and business expenses by keeping your business’s expenses in one spot.
Create a credit history for your business which is useful for later fundraising.
Recommendation: Apply for a simple acceptance business credit card at the Divvy and establish your credit for business quickly.
Step 5: Establish The Business Accounting System
In the recording of your sources of income and expenses is crucial to evaluate how your finances are performing for your company. Maintaining accurate and precise accounts can greatly simplify the tax filing process for your annual year.
Create LLC accounting easier by using our LLC Cheat Sheet for Expenses.
Step 6: Get The Necessary Permits And Licenses
Inability to obtain required permits and licenses could lead to hefty fines or cause your company to shut down.
State & Local Business Licensing Requirements
Certain licenses and permits from the state are required to run the business of a handyman. Find out more about the licensing requirements in your state. Visit the SBA’s website on permits and licenses for state agencies.
The majority of businesses are required to charge sales tax on the products or services they offer. To learn more about how sales taxes affect your business, please read this article: the Sales Tax Guide for Small-sized businesses.
In addition, local regulatory or licensing conditions may be in place. For more details on permits and licenses in your area:
Contact your town county or city clerk’s office.
Find assistance from one of the local associations listed in the the US Small Business Association’s Directory of business local sources.
Services Contract
Handyman firms should require their the clients sign a service agreement prior to starting an entirely new project. The agreement should clearly define the client’s expectations and reduce the risk in legal battles by outlining terms and conditions for payment as well as expectations for service levels. This are some examples of such a service agreement.
Step 7: Purchase business insurance
Similar to permits and licenses Your business requires insurance to run legally and safely. Corporate Insurance ensures your business’s financial health in the event of a loss that is covered.
There are many types of insurance policies designed to cover different kinds of businesses with various risk. If you’re uncertain about the kinds of risks your company is likely to face, begin with General Liability Insurance. This is the most commonly used protection that small businesses require which is why it’s an excellent way to begin your company.
Find out more information about the General Liability Insurance.
Another insurance policy most businesses require is Workers Compensation Insurance. If your business has employees, there’s a good likelihood that your state will require that you have Workers’ Compensation Insurance.
Step 8: Define your brand
Your brand is the thing your company represents in addition to the way your company is perceived by the general public. A well-established brand can aid your business in standing apart from the rest of your competitors.
If you’re not sure when it comes to designing your business’s logo, take a look at the design guides for beginners We’ll provide you with valuable tips and guidance on how to design the perfect distinctive logo for your business.
In the event that you have your logo, you may incorporate it into the QR code using our QR Code Generator for free. Select one of 13 QR codes to create a code to use on your business cards or publications as well as to increase awareness of your new website.
How do you promote and market the business of a handyman
The first thing on your checklist for marketing is to have your business included in all local online directories like Yelp as well as Google My Business. Some handymen have had success advertising on job listings sites that are free like Craigslist. It’s true that this can generate leads for those with the tightest budgets which is why you’ll need to establish some guidelines prior to using this resource for free. Small advertisements on local newspapers and websites can also bring in businesses to market until you’ve built an identity for yourself.
Industry leaders have reported the greatest success by reaching out to property management firms within the region. This is a good method to guarantee a constant flow of work.
As we’ve mentioned before It is crucial to be aware of the laws of your local handyman. There are rules that govern the way and how much you’re allowed to promote, and this is contingent upon the amount of the jobs you accept. To avoid the stress and cost of violating these rules, conduct extensive research in the beginning.
How can you keep customers returning
If you’ve ever looked to help for a home renovation project, you’ll realize that cost is just one aspect. If you are meeting with a potential customer, ensure that you present yourself with professionalism, and you are able to explain to the customer the requirements. Make sure to show them that your work is one higher standard than the rest.
Set reasonable pricesthat are comparable to those of others within the field. By not following this rule, you’ll be undervaluing not just your efforts but also the other work working in the same field. In addition, it is important to meet deadlines and stay on budget when you work. Good customer service can help in spreading the word and aid in the long-term growth of your business.
Undecided about the kind of business you’d like to begin? Take a look at the most recent trends in small business to inspire you.
Step 9: Design your own business’s website
After you have defined your brand’s identity and designing your logo, the next step is to build an online presence for your business.
Although creating the website is a crucial step, many may feel that it’s not within their reach since there isn’t any previous website-building expertise. While this could be a valid concern in 2015, internet technology has made huge leaps over the last few years that have made the lives of small-scale business owners much easier.
Here are the top reasons to not put off creating your site:
Every legitimate business has a websites and that’s that. The size, or type of industry of your company doesn’t have any bearing on making your business accessible online.
Social media profiles like the Facebook page or LinkedIn corporate profiles are not an alternative to a company site that you have.
Website builders tools such as GoDaddy or Wix make the process of the creation of a basic website easy. It is not necessary to employ web developers or designers to build an attractive website you can feel proud about.
Utilizing our site-based building guides, The process should be easy and quick and shouldn’t take more than two hours to finish.
Step 10: Install a Business Phone
Setting up a telephone to your company is among the best ways to keep your private and your business life distinct and private. This isn’t the only benefit, but it can also help you to make your business more efficient and gives your business credibility. While most of business phone providers are stand-alone apps that you have to pay for on top of your scheduling or invoicing apps, RunSensible brings all of these to the table and more. It lets you buy business phone lines to receive and make calls straight from the platform or its mobile app — you can also choose another solution that lets you use RunSensible’s own infrastructure to call your customers with your own phone number.
There are numerous options that entrepreneurs can avail to establish a company telephone system. We’ve reviewed the best companies and then rated them according to their price, features, as well as user-friendliness.
Tools of the Trade — Best Handyman Business Software
RunSensible
Best all-in-one handyman business software
With both a web-based SaaS platform and mobile apps, RunSensible’s many (and I mean many) features will be always with you, whether on-call or not. With RunSensible, you can forget about other apps altogether, since it offers invoicing and payment, scheduling, inventory management, estimates, landing page builder, and even powerful business phone solutions for very affordable prices.
JobFLEX
home services app
It is the invoicing app for a handyman business. It turns your quote into an invoice and saves your time. Not only this, it lets you send the same to the customers directly.
With JobFlex, you can run reports quickly and review the people who haven’t paid for the services. It is available on the Android platform, so you can download the app on the Google Play store.
Dewalt Mobile Pro
With this app, you can make calculations with a few clicks. This app comes with a reference tool and resource materials, and construction information for your reference. This can help you get calculations right and answer customers’ questions with ease.
Additional features:
Functional calculator with nine free add-on calculations like area, length, volume, and formulas for estimating studs, drywall and concrete slabs.
You can save calculations for the future.
You can download this free handyman app from the Playstore.
The Family Handyman
The family handyman is a collection of tips on how a user can improve your house. It is represented in a digital magazine style for iOS.
In this app, you will find a bucket full of tips on carpentry, painting, cleaning, maintaining, etc. These skills can help you provide better handyman services.
Handy pro
It’s like an uber for a handyman profession and directs you to the job opportunities. You will be screened to make sure that you are fit for the required work, bonded, and insured. After that, it directs you to the jobs. The payment gets deposited into your account after the completion of the work.
It acts as an agent and takes a percentage of the fee.
Starting a Handyman Business the Easiest Way
FAQ
Do I have to register my handyman business with the state?
Yes, you really have to register your business with the government, but that’s actually easier than you may imagine, and it will offer you some protection against unforeseen circumstances.
How much does it cost to get all the different handyman business software tools?
Well, if you decide to get a different app for every demand (like invoicing, business phone, and scheduling), you’ll have to pay a considerable amount of money every month. With an all-in-one handyman business software like RunSensible, however, you can spend a fraction of that and get the same features and much more.
Disclaimer: The content provided on this blog is for informational purposes only and does not constitute legal, financial, or professional advice.
